Severe Upside Down Mortgage with no help in sight!?

  • Thread starter Thread starter renzo11
  • Start date Start date
R

renzo11

Guest
I live in a small town south of San Jose, California. My wife and I purchased a home there in 05 when the market was just about to "peak". We took out a two year adjustable jumbo loan with less than 10% down payment. The current total for a first and second mortgage is $635,000 and the foreclosures in our area are through the roof. Our largest loan at $535,000.00 is also interest only and not scheduled to djust again until 2010. Comparable houses in the neighborhood are going for $390,000 to $420,000. Even if the market corrects, it may never reach the value of our current loan. We are considering walking away and taking the financial consequences that my follow. We have medium credit to good credit, but our feeling is that we are throwing a lot of good money at a bad investment. My questions are: 1.What do we need to consider if we choose to talk away, 2.Is there a service or consulting firm that can help, 3. Government assistance ideas?

Thanks
 
Back
Top